CAE Inc.
CAE Inc. is a Canadian aerospace and technology company focused on simulation, training, and operational support solutions. CAE Inc. provides flight simulators, training devices, and digital training programs for civil aviation customers, including airlines, business aviation operators, aircraft manufacturers, pilots, cabin crew, maintenance teams, and air traffic controllers. The company also serves defense and security organizations with mission training systems, simulation products, and integrated training services across air, land, naval, and public safety applications. In addition, CAE offers aviation software and crew sourcing services that support airline operations and workforce readiness. CAE Inc. plays an important role in the global market by helping organizations prepare personnel for complex, safety-critical environments through immersive, technology-driven training solutions.
$25.00
-$0.02 (-0.08%)
EOD Oct 23, 2026
12.63% operating margin is respectable but not wide. ROIC at 5.88%.
Revenue grew 4.4% in the fiscal year ended Mar 2026, steady but not accelerating.
At 38.87x earnings, the multiple leaves limited room for execution misses or growth deceleration.
38.87x earnings, 16.34x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
C$4.99B
▲ +4.4% YoY
Net Income (TTM)
C$295M
▼ -22.2% YoY
Op. Margin
12.63%
▼ -0.3pp YoY
ROIC
5.88%
▼ -0.4pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
C$690M
▼ -4.9% YoY
Op. Cash Flow (TTM)
C$982M
▼ -21.7% YoY
Net Debt
C$2.68B
Cash & Equiv.
C$552M
3Y CAGR: +7.0%
Continue Research
Is CAE (CAE) overvalued?
At a P/E of 38.9 and a price-to-free-cash-flow of 16.3, CAE (CAE) trades below a two-stage DCF intrinsic value of about C$99.75 per share, so at C$25.00 the stock looks undervalued (299.0% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, CAE scores 67/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is CAE's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about C$99.75 per share for CAE, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around C$74.81. At today's C$25.00, that puts the stock about 299.0% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is CAE a high-quality business?+
CAE scores 67 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 12.6% operating margin and a 5.9% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Is CAE a good stock to buy right now?+
That depends on valuation and quality together, not either alone. CAE currently trades below its estimated intrinsic value and scores 67/100 on quality (solid). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.
Related stocks: Aerospace & Defense
Spot a number that looks wrong?
Download this analysis as a PDF (Pro)
Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
Keep analysing CAE
Create a free account and get 14 days of Premium: every stock and every tool.
- Unlimited stocks
- Stock screener
- Portfolio tracker
- Editable DCF
- Compare side by side
- Unlimited alerts
No card. Moves to Free after, unless you upgrade.
Already have an account?
Or come back tomorrow. Stocks on your watchlist are always free to view.